Bengaluru-based edtech company Learning Matters has raised an undisclosed sum in a Pre-Series A funding round from Lavni Ventures and a group of angel investors, the company said in a statement.
The company plans to use the funds to accelerate its marketing initiatives across India, and for the development of its flagship edtech solution Tara, a virtual voice teacher.
Founded by G. Ramamoorthy, Gowri Mahesh and Saraswathy Ramamoorthy, Learning Matters uses artificial intelligence (AI) and voice technology for teaching and learning processes, the statement said.
“Lavni Ventures’ overlapping philosophy on creating a profitable and sustainable venture that is equally focussed on making an impact in the Indian education sector makes their investment in us exciting,” said Ramamoorthy.
“At Lavni Ventures, we invest in startups that create significant social impact by breaking the barriers to equitable access to technology and expertise in a sustainable manner. We are delighted to invest in Learning Matters which delivers affordable technology-assisted teacher training and English language skilling for students”, Vasu Guruswamy, Partner and Co-founder of Lavni Ventures said.
Founded in 2018, Lavni Ventures is an early-stage investment firm that partners with potential investees as mentors, and develops long-term trusted relationships before investing, the statement said.
The edtech market in India has witnessed frenetic funding and mergers and acquisitions (M&A) activity since the onset of the coronavirus pandemic last year. In October, VCCircle reported that Amsterdam-based Global University Systems has acquired a 100% stake in Indian education firm Edvancer Eduventures Ltd, which offers online certification courses in data science.
Vernacular edtech platform Vidyakul raised an undisclosed sum in a financing round from Dholakia Ventures and other angel investors. Similarly, Bengaluru-based ForeignAdmits raised Rs 3.5 crore in a seed funding round led by Unicorn India Ventures.
In July, Teachmint Technologies Pvt Ltd, focused on tutor-student connectivity, raised $20 million (Rs 149.4 crore) in a pre-Series B funding round led by global edtech-focused VC firm Learn Capital. In November, Unacademy Group-owned Graphy acquired edtech platform Spayee for $25 million.
In 2021 till date, three edtech companies have turned unicorn, taking the total number of such startups in the country - with a valuation of over $1 billion, to five.
Executive education platform Eruditus and higher learning startup upGrad became unicorns in 2021, with Vedantu being the latest edtech company to join the club in late September after raising $100 million in a Series E round led by Singapore-based impact investor ABC World Asia.
India’s edtech sector is expected to grow at a CAGR (compound annual growth rate) of over 15% from $2.8 billion in 2020 to $30 billion in 2030, citing a BLinC Investment Management report, which also terms India as the world’s most active edtech market.